Unique public-private partnership brings financial opportunity to rural entrepreneurs
Thursday September 13, 2007
Governor Phil Bredesen and Tennessee Bankers Association sign on, endorse program
NASHVILLE, Tenn. - Governor Phil Bredesen today announced to Tennessee's economic development community the launch of the Tennessee Rural Opportunity Fund, a new economic development initiative aimed at providing loans and technical assistance to small, disadvantaged, and early-stage businesses in rural Tennessee.
This is a first-of-its-kind public-private partnership between the State, the Tennessee Bankers Association (TBA), and Southeast Community Capital (SCC), a not-for-profit Community Development Financial Institution that provides loans to small businesses lacking access to traditional financing. SCC currently operates similar funds in Knoxville, Memphis, and Nashville. SCC also manages a state-wide micro loan program in conjunction with the US Small Business Administration and acts as a US Department of Agriculture Intermediary Relender.
"The Rural Opportunity Fund is truly an innovative partnership," said Bredesen. "I'm excited about the opportunities that will arise from this new source of capital for small and independent business growth here in Tennessee."
Currently, Rural Opportunity Fund managers are actively securing $10 million in investments from Tennessee Bankers Association member's banks. Over the next 10 years, it is anticipated that the Fund will generate over $25 million in loans, financing over 350 small, minority-, and women-owned businesses, and create over 600 new jobs.
"Without question, our member banks regularly see small businesses that they believe have a chance to succeed, but are just not bankable yet. These entrepreneurs are the one's who will benefit from this partnership by gaining access to much needed capital," according to Brad Barrett, president of the TBA.
"There is an overwhelming need for small business capital in rural Tennessee and we are focused on getting our resources in the hands of those who need it most," said Southeast Community Capital president Clint Gwin. "Banks can't meet the needs of all business, which is why our focused financial and mentoring resources are so important to rural economic growth."
Learn more about the Rural Development Fund at http://www.sccapital.org/.
